Connecticut Provides Sales Tax Relief for Meal Sellers

Connecticut has enacted legislation allowing sellers of meals to retain the sales tax they collect on meal sales for a specified period.

Hotel Rooms Booked through Marketplace Facilitators are Subject to West Virginia Hotel Occupancy Tax

Effective January 1, 2022, where a hotel or hotel operator contracts with a marketplace facilitator to offer hotel rooms, the marketplace facilitator is responsible to collect and remit tax when it meets the state’s economic nexus requirements.

Rental Cars Used in Chicago – A Personal Property Lease Transaction Tax Saga

The Illinois Supreme Court held that the City of Chicago’s ruling to require rental car companies located within three miles of the City to collect tax is unconstitutional under the home rule article of the Illinois Constitution.

Arizona Adopts Rule Amending Treatment of Gratuities for TPT

Arizona has amended the treatment of gratuities for TPT purposes.

Membership Fees Not Taxable as Lump-Sum Admission Fees in Alabama

A taxpayer’s charges for annual and family memberships constituted exempt membership dues and not taxable lump-sum admissions fees in Alabama.

Virginia Department of Taxation Provides Guidance on New Vehicle Sharing Tax

Peer-to-peer (PTP) vehicle sharing platforms will be obligated to collect the tax on behalf of the owners if it meets the marketplace facilitator thresholds in Virginia ($100,000 in annual revenue or 200 transactions)

Electronic Gaming Devices Properly Taxed as Games of Entertainment in Maryland

Maryland held that electronic gaming devices were properly characterized as games of entertainment for purposes of being assessed Admissions and Amusement (A&A) Taxes.

Louisiana Enacts Tax on Fantasy Sports Revenues

Effective July 13, 2020, Louisiana has enacted a 8% tax on the net revenues of fantasy sports contests offered to consumers in Louisiana.

Florida Supreme Court Declines Review of Airbnb Short-Term Rental Local Tax Dispute

Airbnb and other short-term rental platforms were not considered dealers for purposes of the Florida Tourist Development Tax and were not required to collect and remit the tax.

Peer-to-Peer Car Sharing Services to Remain Taxable in Maryland

Maryland has extended the sunset date for the imposition of sales tax on peer-to-peer car sharing services until June 30, 2021.

Entertainment Center Not Subject to Virginia Tax on Points Used to Activate Games and Rides

A family dining and entertainment center was not subject to Virginia tax on the sale of Play Points sold to customers as part of party packages.

Ride-Sharing Service Providers Required to Collect Tax in Georgia

Effective April 1, 2020, ride-sharing service providers (e.g. Uber, Lyft) are required to collect and remit sales tax in Georgia as a result of marketplace nexus legislation.

Missouri Denies Resale Exemption to Seller of Hotel Room Furnishings

The Missouri Supreme Court held a taxpayer could not rely on prior “sale for resale” cases which were decided based on the Court’s own “tangled analysis”. Here, the Court affirmed that the sale of room furnishings to a hotel company were not exempt under the state’s sales tax resale exemption.

Illinois Issues Guidance on Parking Excise Tax

The Illinois Department of Revenue (DOR) has issued information regarding the state’s Parking Excise Tax, which took effect on January 1, 2020.

New Jersey Limits Scope of Transient Accommodations Subject to Taxes and Fees

New Jersey transient accommodation taxes and fees are only applicable if rented through marketplace or professionally managed unit.

Hotel Guest Consumables Subject to Texas Sales Tax

A Texas hotel was not entitled to a sale for resale exemption on guest extras provided to customers.

Pennsylvania Releases Guidance on Hotel Occupancy Tax for Booking Agents

Effective January 22, 2019, a booking agent that facilitates the short-term booking of an occupancy on behalf of a hotel operator located in Pennsylvania must now collect and remit hotel occupancy tax on the rent collected.

Tablet Rental Charges for Restaurant Subject to South Carolina Sales Tax

A restaurant operator’s payment of charges for the use of a third-party vendor’s table top ordering and bill payment tablets were subject to South Carolina sales and use tax.

Tennessee Explains Application of Sales Tax to Restaurant Gift Cards

The Tennessee Department of Revenue Issued a letter ruling to explain the how sales tax applies to a taxpayer’s purchase and distribution of gift cards.

Online Travel Companies Responsible for Hotel Occupancy Taxes in Pennsylvania

Effective January 22, 2019, booking agents are required to collect Pennsylvania state and local hotel occupancy taxes on the full retail rate charged for a hotel room.

Airline Entitled to Virginia 90 Continuous Days Exemption on Hotel Rooms

An airline was entitled to a Virginia sales tax exemption on hotel rooms it occupied for longer than 90 continuous days.

Minnesota Issues Sales Tax Guide for Hotels and Other Lodging Establishments

The Minnesota Department of Revenue released a sales and use tax industry guide for hotels and other lodging establishments.

Wisconsin Provides Guidance on Lodging Marketplace Tax Duties

Wisconsin has issued a bulletin with guidance on tax responsibilities for persons offering short-term lodging through third-party websites (such as Airbnb and VRBO).

North Carolina Issues Letter Ruling on Taxability of Hotel Stays

Hotel stays over 90 days in North Carolina are exempt from state sales tax, even if a guest checks out and immediately checks back during the period to take advantage of a discount.